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Capital One Credit Card/Cash Advance Question?

Credit Card Debt discussions & tips

Capital One Credit Card/Cash Advance Question?

Postby bramwell8 » Mon Aug 08, 2011 7:09 am

Ok, so I just got my Capital One credit card, credit limit of $500, cash advance limit of $450 and am in need of $400 asap and I don't get paid for over a week. I know that I can go to an ATM and withdraw cash but I've heard this is a BAD THING to do because of all the fees and interest rates charged later on. So, can I go into a supermarket or Rite-Aid or somewhere, buy something small, and when they ask me if I want cash back, I say yes and get the maximum allowed there? Would that be any different or wiser?

Thank You
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Capital One Credit Card/Cash Advance Question?

Postby neo » Mon Aug 08, 2011 7:10 am

With a cash advance, you pay a $5 upfront fee for using an ATM no matter how much you withdraw (at least w/ my Capital One card). You then begin accruing interest immediately. Most credit cards have interest rates in the 20% to 25% range so you want to pay off the balance ASAP to minimize your interest. Most supermarkets and drug stores limit the amount of cash back you can get to $100 so you may have to use an actual ATM if you want $400.
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Capital One Credit Card/Cash Advance Question?

Postby dudley46 » Mon Aug 08, 2011 7:12 am

Some cards allow you cash back.
Amounts are small $20 to $100 (max)
So the grocery store idea will not work.

Go ahead and get that Cash Advance if you desperately need it.
You'll need your 4 digit pin
Just make a promise that as soon as you get paid, you will call and get your balance.
You will immediately make a payment to that card.
You will get another statement with some residual interest so keep an eye on your mail.
Then pay that amount.
Make sure you get a statement with a $0
You are about to get in a big mess if you don't pay this back in full when you get paid
For one - you will be maxing out (this is when you come close to the limit)
This drops a score by 100 points- easily.
Don't let a credit card destroy your life. Ok?
Employers check, so do landlords and car insurance companies (you'll pay more)
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Capital One Credit Card/Cash Advance Question?

Postby walby93 » Mon Aug 08, 2011 7:18 am

all cash advance cards have fees and do not spend money you don't have save it for urgent needs
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Capital One Credit Card/Cash Advance Question?

Postby cash16 » Mon Aug 08, 2011 7:20 am

The ATM may have a transaction fee but that is nothing compared to the cash advance fee charged by the credit card -- 3% to 5%, depending on your card terms. The cash advance starts to accrue interest immediately at the higher cash advance rate. This is a very expensive way to borrow money.

If you go to the grocery and do a cash back, this is not treated as a cash advance and doesn't have the fee. However, there is a limit as to how much $20 to $50, depending on the store. The store has to pay merchant fees on credit card charges and they offer these cash back transactions as a convenience to customers. They may not allow you to do a cash back if you only buy a pack of gum.

It would be smarter to just charge things you need to the credit card and not take a cash advance. You could then avoid paying any interest by paying the balance in full by the statement due date.
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Re: Capital One Credit Card/Cash Advance Question?

Postby andimill » Sat Oct 26, 2013 9:45 am

Capital One, the bank that has all those Vikings in its commercials, has resolved a regulatory probe into its credit card marketing by the Consumer Financial Protection Bureau, the first such case for the agency. The Consumer Financial Protection Bureau Capital One case has resulted in the bank having to pay over $200 million in penalties and reparations.
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